Journal of Finance and Accounting

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The Relationship Between ROA, ROE, ROCE and EPS Ratios with Break-up Values of Shares of Karachi-Pakistan Fuel and Energy Listed Companies

Received: 03 June 2014    Accepted: 13 June 2014    Published: 27 May 2017
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Abstract

The purpose of this study is to examine the relationship among ROA, ROE, ROCE and EPS ratios together and separately with Break-up Values of Shares Karachi-Pakistan fuel and energy listed companies during the period (2006-2011). Because the fundamental view says that the market prices of shares follow the intrinsic values of shares. The empirical results suggest that collectively these ratios except ROE show significant positive relationship with break-up values of shares and separately ROA, ROCE and EPS show significant positive relationship with break-up values of shares whereas ROE shows insignificant positive relationship with break-up values of shares separately.

DOI 10.11648/j.jfa.20170503.15
Published in Journal of Finance and Accounting (Volume 5, Issue 3, May 2017)
Page(s) 115-122
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

ROA, ROE, ROCE and EPS

References
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[9] Dr. Majed Abdel Majid Kabajeh, Dr. Said Mukhled Ahmed AL Nu’aimat & Dr. Firas Naim Dahmash (2012),” The Relationship between the ROA, ROE and ROI Ratios with Jordanian Insurance Public Companies Market Share Prices” International Journal of Humanities and Social Science Vol. 2 No. 11; June 2012.
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[12] Akma Hidayu Dol & Abdul Wahid (2013,” Measuring the Motivating Factors for Share Buyback: Evidence from Malaysian Companies” ISSN 2277-0844; Volume 2, Issue 2, pp 35-50; February, 2013. Online Journal of Social Sciences Research
[13] Abdol Hossein Talebi Najaf Abadi, Mostafa Zangi Abadi, Narjes Kamali Kermani, Shiva Safarian, Mohammad Kaveh Nobandegani, Roholah Talebi Najaf Abadi, morteza adlzadeh & Farshad mohammad pour (2013),” Impact of New Technology on Market Value Price and Value Relevance of Accounting Information in the Tehran Stock Exchange” J. Basic. Appl. Sci. Res., 3(9)721-728, 2013.
[14] Frankel, R & Lee, C.M.C 1998, Accounting diversity and international valuation, Retrieved from SSRN: http://ssrn.com/abstract=2658.
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[16] Vijitha P. and Nimalathasan B (2014),” Value relevance of accounting information and share price: A study of listed manufacturing companies in Sri Lanka” Merit Research Journal of Business and Management Vol. 2(1) pp. 001-006, January, 2014.
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Author Information
  • School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan

  • Deparment of Management Sciences, Comsats Institute of Information Technology, Islamabad, Pakistan

  • School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan

  • School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan

  • School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan

  • School of Accounting and Finance, University of Central Punjab, Lahore, Pakistan

Cite This Article
  • APA Style

    Muhammad Aamir Ali, Usama Kalim, Hasnain Raza, Hafiz Amir Ali, Mohsin Rehman, et al. (2017). The Relationship Between ROA, ROE, ROCE and EPS Ratios with Break-up Values of Shares of Karachi-Pakistan Fuel and Energy Listed Companies. Journal of Finance and Accounting, 5(3), 115-122. https://doi.org/10.11648/j.jfa.20170503.15

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    ACS Style

    Muhammad Aamir Ali; Usama Kalim; Hasnain Raza; Hafiz Amir Ali; Mohsin Rehman, et al. The Relationship Between ROA, ROE, ROCE and EPS Ratios with Break-up Values of Shares of Karachi-Pakistan Fuel and Energy Listed Companies. J. Finance Account. 2017, 5(3), 115-122. doi: 10.11648/j.jfa.20170503.15

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    AMA Style

    Muhammad Aamir Ali, Usama Kalim, Hasnain Raza, Hafiz Amir Ali, Mohsin Rehman, et al. The Relationship Between ROA, ROE, ROCE and EPS Ratios with Break-up Values of Shares of Karachi-Pakistan Fuel and Energy Listed Companies. J Finance Account. 2017;5(3):115-122. doi: 10.11648/j.jfa.20170503.15

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  • @article{10.11648/j.jfa.20170503.15,
      author = {Muhammad Aamir Ali and Usama Kalim and Hasnain Raza and Hafiz Amir Ali and Mohsin Rehman and Muhammad Ismat Ullah},
      title = {The Relationship Between ROA, ROE, ROCE and EPS Ratios with Break-up Values of Shares of Karachi-Pakistan Fuel and Energy Listed Companies},
      journal = {Journal of Finance and Accounting},
      volume = {5},
      number = {3},
      pages = {115-122},
      doi = {10.11648/j.jfa.20170503.15},
      url = {https://doi.org/10.11648/j.jfa.20170503.15},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.jfa.20170503.15},
      abstract = {The purpose of this study is to examine the relationship among ROA, ROE, ROCE and EPS ratios together and separately with Break-up Values of Shares Karachi-Pakistan fuel and energy listed companies during the period (2006-2011). Because the fundamental view says that the market prices of shares follow the intrinsic values of shares. The empirical results suggest that collectively these ratios except ROE show significant positive relationship with break-up values of shares and separately ROA, ROCE and EPS show significant positive relationship with break-up values of shares whereas ROE shows insignificant positive relationship with break-up values of shares separately.},
     year = {2017}
    }
    

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    T1  - The Relationship Between ROA, ROE, ROCE and EPS Ratios with Break-up Values of Shares of Karachi-Pakistan Fuel and Energy Listed Companies
    AU  - Muhammad Aamir Ali
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    T2  - Journal of Finance and Accounting
    JF  - Journal of Finance and Accounting
    JO  - Journal of Finance and Accounting
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    EP  - 122
    PB  - Science Publishing Group
    SN  - 2330-7323
    UR  - https://doi.org/10.11648/j.jfa.20170503.15
    AB  - The purpose of this study is to examine the relationship among ROA, ROE, ROCE and EPS ratios together and separately with Break-up Values of Shares Karachi-Pakistan fuel and energy listed companies during the period (2006-2011). Because the fundamental view says that the market prices of shares follow the intrinsic values of shares. The empirical results suggest that collectively these ratios except ROE show significant positive relationship with break-up values of shares and separately ROA, ROCE and EPS show significant positive relationship with break-up values of shares whereas ROE shows insignificant positive relationship with break-up values of shares separately.
    VL  - 5
    IS  - 3
    ER  - 

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